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Implementing Flexicurity in Times of Crisis, Prague March 2009

Implementing Flexicurity in Times of Crisis, Prague March 2009 The road to flexicurity – incentives and barriers by Thomas Mølsted Jørgensen Head of Division National Directorate of Labour Copenhagen, Denmark. What is Flexicurity in the context of Labour Market Policy?.

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Implementing Flexicurity in Times of Crisis, Prague March 2009

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  1. Implementing Flexicurity in Times of Crisis, Prague March 2009 The road to flexicurity – incentives and barriers by Thomas Mølsted Jørgensen Head of Division National Directorate of Labour Copenhagen, Denmark

  2. What is Flexicurity in the context of Labour Market Policy?

  3. Flexicurity: a labour market policy measure + Easy hiring/firing + High and secure UI-benefit + ALMP: relevant offers, duty to seek jobs and participate in active measures

  4. Flexicurity: the Danish experience • Catalytic for a dynamic labour market • Vacant jobs to be filled, also in times of crisis • Workers motivated to adapt and upgrade qualifications to new conditions • Security: stability in the economy – macro as micro

  5. Barrier 1Ineffective ALMP If • scarce resources in PES • no compulsion to participate in active measures • insufficient monitoring of job-seeking • shortage of relevant education / training

  6. Barrier 2 Lack of flexibility If • low UI-benefit prevents acceptance of risk of firing • fear of unfair dismissals due to lack of unions • never-ending benefit = disincentives to mobility

  7. What to focus on • Acknowledge that unemployment is a stressor • Rights and duties – unemployed must be active • Strengthen social partners’ organisations? • to reduce threat of unfair dismissals

  8. Conclusions • Positive initiatives + a tougher stance • Job turnover important as job creation • Institutional constraints severe • Incentives important, but • could be established in many ways • Trust and credibility are essential

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